The World's Largest Prehistoric Eco-Friendly Container Ships Built by Korea Shipbuilding & Offshore Engineering... 8 Vessels, 1.6 Trillion Won Contract

Hanjohae-Musk Signs Contract for Methanol-Powered Container Ship Construction
First Large Container Ship with Methanol Engine... Annual CO₂ Reduction of 1 Million Tons

Park Seung-yong, Vice President of Hyundai Heavy Industries, Henrik Eckman, Chief Newbuilding Officer of Maersk, Ga Sam-hyun, President of Korea Shipbuilding & Offshore Engineering, and Cho Kyung-geun, Head of the Metal Workers' Union Hyundai Heavy Industries Branch, are taking a commemorative photo after the construction contract.

[Asia Economy Reporter Choi Dae-yeol] Korea Shipbuilding & Offshore Engineering announced on the 24th that it has signed a contract with Maersk to build eight ultra-large container ships powered by methanol fuel for 1.6474 trillion KRW. Maersk, the world's largest shipping company, has decided to operate methanol-powered vessels to comply with environmental regulations.

The contracted vessels are 16,000 TEU class (1 TEU equals one 20ft container) and will be the first large container ships in the world to be equipped with engines using methanol fuel. Earlier, in June, Maersk had placed a pilot order for a 2,100 TEU small container ship with Korea Shipbuilding & Offshore Engineering. The industry views this as a move to expand the fleet in earnest after determining that methanol-powered vessels meet environmental regulations. Korea Shipbuilding & Offshore Engineering has so far secured orders for 25 methanol-powered vessels.

Methanol significantly reduces emissions of pollutants such as sulfur oxides, nitrogen oxides, and greenhouse gases compared to conventional marine fuels. It is gaining attention as an eco-friendly fuel in the carbon-neutral era. Maersk expects that by replacing some of its older container ships with these new vessels, it can reduce annual carbon dioxide emissions by approximately 1 million tons.

The contract includes an option for four additional vessels, allowing for further orders depending on future circumstances. While existing container ships of similar size cost in the mid-100 billion KRW range per vessel, these new ships exceed 200 billion KRW each, making them significantly more expensive. They will be built at Hyundai Heavy Industries in Ulsan and delivered sequentially by 2024.

A Korea Shipbuilding & Offshore Engineering official said, "This is significant as the first case of installing methanol propulsion engines on large container ships," adding, "We will strengthen cooperation with Maersk in alternative fuel fields such as methanol and ammonia to lead the eco-friendly ship market."

The contract signing ceremony, held via video conference, was attended by Cho Kyung-geun, head of the Hyundai Heavy Industries branch of the Korean Metal Workers' Union under the Korean Confederation of Trade Unions. Cho stated, "The labor union will also do its best to cooperate to build flawless ships in all aspects, including safety and quality."